Trident India shares surged over 14 per cent on Friday after CNBC TV18 reported that Target Corp is mulling shifting its business contract to the company after severing ties with Welspun India in the wake of alleged use of cheap quality cotton in the bedsheets and pillowcases supplied to it other than Egyptian cotton. Media reports further added that Target Group may be sampling bedsheets made by Trident. Bombay Stock Exchange has sought a clarification from the company with reference to news published.
The share price of the company was trading 14.16 per cent up at Rs 56.85 at 11.45 am. The scrip opened at Rs 50.25 and touched a high and low of Rs 57.25 and Rs 50.10, respectively, in trade so far. Later, the scrip ended 12.45 per cent up at Rs 56.
Target Corporation after an extensive probe said that that Welspun substituted another type of non-Egyptian cotton when producing bed sheets between August 2014 and July 2016. Welspun India after the controvesry has appointed an external auditor to look into alleged lapses in its products supplied to clients and hopes the process to get completed in about 6-8 weeks.
As a fallout of the controversy, Bed Bath & Beyond has ordered a third party audit of items sourced from Welspun India, joining Walmart and JCPenny following lapses in supplies by the Gujarat-based company.
Meanwhile, Welspun India which staged a recovery in the early trade is now back in the red and was trading 3.22 per cent down at Rs 52.65 at 12.11 pm. Welspun India shares plummeted 47 per cent in last 4 trading session.